Lesson correlates with National Business Education Association National Standards for Business Education, 1995, Reston, Virginia.
· Standard VIII. Import/Export and Balance of Trade... Achievement Standard:  Relate balance of trade concepts to the import/export process.
       B. Trade Barriers and Agreements
· Level 3 (Secondary) - Performance Expectations:  Describe several international trade agreements.
International Trade Agreements

 
TIME REQUIRED:
Two  50-minute class  periods
 
RECOMMENDED GRADE:
Grades 11-12


 
MAJOR CONCEPTS:
 Free trade zones, 
International Trade Agreements, 
General Agreement on Tariffs and Trade  (GATT),
North American Free Trade Agreement  (NAFTA).
 
 
INSTRUCTIONAL OBJECTIVES:
 1. Understand the concept of “free trade.” 
    
  2. Understand the concept of GATT, and its basic principles.

  3. Be able to discuss reasons what  “free trade” offers as advantages     and disadvantages to a country.
 
  4. Be able to discuss the North American Free Trade Agreement in     terms of what Canada might see as benefits and problems.

  5. Discuss how NAFTA might affect Mexico and the U.S. in terms of    advantage and disadvantage. 
 
 
MATERIALS:
  •  Handout:  NAFTA:  A CANADIAN PERSPECTIVE

    •    
       (If possible, the instructor should get the booklet entitled the   Basics of Foreign Trade and Exchange, by Adam Gonnelli, and     published by the Federal Reserve Bank of New York, Public     Information Department, 1993.)
     
RATIONALE:
 : Have students read the handout, NAFTA:  A CANADIAN      PERSPECTIVE, after explaining about  “free trade,” trading     zones, and trading partners.  
     
   The General Agreement on Tariffs and Trade (GATT)began just     after World War II, and is essentially a treaty among many      different nations to help manage global trade.  The basic principles     are: national origin of an import should not be a factor in      considering trade barriers; tariffs and not quotas should be used to     protect domestic industries; GATT meetings should provide a     forum to discuss trade issues and a legal instrument to codify     agreements.
 
   Arguments for and against free trade have, and will continue to      have supporters--and neither group is completely “right” or      “wrong.”  In theory, free trade promotes competition, creates lower    prices to consumers, and forces industries to maintain efficient     methods of production.  It may also create unemployment or full     employment, depending on where the cheapest labor might be--and    thus, create a disparity in standards of living throughout the world.
 
   One of the newest trading bloc is made up of the U.S., Canada, and    Mexico--called the North American Free Trade Agreement      (NAFTA).
 
 
PROCEDURE:
  1. Hand out   NAFTA:  A CANADIAN        PERSPECTIVE for students to read individually.  
    2. Ask students to work in groups, and to write down       the benefits to Canada of NAFTA, and to list what       they think would be problems to Canada.  

    3. Each group should then develop  lists of benefits       and problems from the perspective of the U.S. and       Mexico.

    4. Have student groups compare and critique lists.
 
 
 
 
EVALUATION: Evaluate students on their group participation.
 
AUTHOR:
 Rosemary Piserchio, College of San Mateo, San Bruno, CA..
EDITORS:
Les Dlabay, Lake Forrest College, Wildwood, IL.
Robert Ristau, Eastern Michigan University (ret.), Ypsilanti, MI.

 
 
 
 
 

Click here to download Microsoft Word version of the plan including handouts.